Tue Dec 10 15:18:58 UTC 2024: ## RBI Governor’s Signature on Currency Notes: A Matter of Law and Guarantee
**Mumbai, India** – The Reserve Bank of India (RBI) has appointed Sanjay Malhotra as its new governor. This appointment brings renewed attention to the significance of the governor’s signature on Indian currency notes.
All banknotes issued by the RBI, except for the one-rupee note, bear the signature of the governor. This is not merely a formality; it is mandated by the Reserve Bank of India Act, 1934, specifically Section 22, which grants the RBI the authority to issue currency. The signature serves as a guarantee that the RBI promises to pay the bearer the amount printed on the note. A phrase to this effect is printed on each note.
The one-rupee note is an exception, issued by the Ministry of Finance and bearing the signature of the ministry’s secretary, not the RBI governor.
The RBI’s role extends beyond currency issuance; it also sets interest rates for banks, though banks retain the right to modify these. The governor’s signature, therefore, acts as a crucial element of legal validity and a guarantee of payment. Issuing banknotes without the governor’s signature is against the regulations. With the appointment of Mr. Malhotra, new notes bearing his signature will soon enter circulation.
First Piper 